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How do you feel about a device that is listening to everything that is being said in your home or office and is connected to the Internet? Especially in this age of cyber terrorism, when we know that criminals already use tools like Facebook to target people with easy to steal and easy to sell assets.

How do you feel when Gmail bombards you with advertisements for products you have just bought or vacation location deals when you have just returned home from that place? Besides being a waste of time because you already have those things, it shows how Google (in return for giving you free email software and storage) has access to everything you write using their freeware.

So when Amazon had their massive sale on Prime Day, I thought about the Amazon Echo and wondered what I would do with it if I had one and why.

I very occasionally use Siri to save a reminder, a note, perhaps in the car to reduce the risk of having pen and paper in my hand when the lights change, or illegally using my phone because of the inherent risks, even at a traffic light. No joke, my wife has had 2 cars she was driving totalled, both while she was legally stationary at a red light. I’m not saying she could have avoided them, she couldn’t, but the people who hit our cars were certainly not paying attention.

So when I take Siri, and I have to admit it has improved in it’s ability to understand my Kiwi accent, the number of times I have said one thing and Siri has randomly rung a phone number for someone I had no desire to speak with and the fact that Siri has even randomly responded to a sound it heard, when I hadn’t even touched my phone is interesting.

I would love to have an automated home. When I got home last night from dinner in the freezing cold city it was around 6 degrees inside our house and I said to my wife how nice it would be if I could have turned on the heat pump via my phone. It has a timer, but we didn’t know when we would be home and I’m sure we could get an electrician to wire a remote switch into that circuit without having to buy a new heat pump, but I digress.

When everything I write makes a permanent footprint on the Internet and the supplier of that service has access to it all in order to ‘assist me’, I struggle with why I would want another device listening to everything I say.

Imagine living in a country like North Korea where you can be put in jail or worse for just saying the wrong thing to the wrong person, and then having a device that YOU PURCHASED providing access to every word that you said in the ‘privacy of your own home’.

Now I know that Amazon is not a spy agency, they can’t afford for this product to risk your privacy because if it did, they could go broke, but they do want to know what you are interested in and devices like these are supposed to be your personal digital assistant. I used to have an executive assistant in one of my jobs and she knew what I wanted or needed often before I did. It was awesome because I knew and trusted her. this device has to listen, even for the Alexa command to work, so technically it is listening to every word, even if in theory it is identifying most as not relevant.

The biggest issue for me with devices like this, which was also why I digressed a little with the heatpump, is that hacking or cyber crime is easy if you know how,or are prepared to pay someone to do it for you. Whether it is hacking someone’s wireless internal garage door or front door, checking Facebook to see who has a boat in the their back yard AND is on holiday overseas is really simple, because most people don’t know how to or don’t want privacy, because they don’t realise the risk.

You could say that Alexa can only be woken by people using the word Alexa, then it starts listening for instructions. So what is the first thing that is going to happen when you buy one of these devices? You’re going to tell your friends about it and show it off, so you are going to be using the word frequently and waking it up frequently and it will start listening.

For now I think I’d at least like to be able to use the fingerprint recognition on my phone and tap a button to turn on an appliance if I can’t be bothered standing up to do something like turn on a light. I am happy that I can have a wireless remote system with security algorithms to do that. I’m not sure I want Amazon or a hacker to be able to listen to everything said in my home and then using data mining tools to look for keywords or information that could be used by criminals, or by advertisers to send me more info I don’t want.

Who owns your personal information? Who gives companies the right to collect data about you, your family, your friends, your activities, where you live, what you eat, drink, your health, how you travel? Somewhere along the line you probably did, because you didn’t read, or understand the fine print when you signed up for an application, an email newsletter, a loyalty card, or you aren’t worried about your privacy.

There has been much talk about the NSA, and big data monitoring systems in most countries around the world designed to protect us all from terrorism. There has been a lot of talk about how privacy is being eroded with social media. Many of us have the philosophy that if we don’t do anything wrong, we have nothing to hide. But who else is collecting, buying and selling personal information about you?

A recent story in The Futurist called ‘Connecting with our Connected World captured my attention, particularly when it outlined, from a Wall Street Journal article, apparently fairly common knowledge, that many retail stores track personal shopping habits using loyalty cards and then resell the data to marketers. The Wall Street Journal article ‘confirmed’ that this same data is now being purchased by insurance companies for the purpose of setting premiums and investigating claims.

With the Internet of Things (IoT), we are now being encouraged to buy fridges with built in bar code readers and wireless connectivity, so that we can scan items we use and feed them to our shopping list. Many of us now have grocery applications, such as the Countdown app, which I have blogged about before in my SoLoMo Consulting blog.These apps monitor what you buy, suggest specials, recipes and even navigate you up and down the aisles of your nearest supermarket so you don’t have to backtrack for things you forgot.

As Richard Yonck of Intelligent Future LLC in Seattle points out in The Futurist, “the rate at which a household consumes sugar, salt, tobacco and alcohol would potentially be an open book.” What could your health insurer infer from that?

It names them

Combine the information from your mobile apps that know your location, where you have given permission (which is probably half of the apps you use today), your climate control, light controls (that suggest you might be home, or not), fitness apps, social media (freely searchable with tools like Facebook Graph like the example which names people who like Edam cheese,) the direction Google and Apple are heading, to be able to predict what services you may want next based on your context, profile, time and location, your life is an open book today.

The problem with all this big data that we are ‘willingly’ sharing, is that we really don’t know what we are agreeing to or what the data is being used for. I don’t believe we have adequate laws nationally or internationally to protect us from abuse of this data by any agency, business, government department, insurance company, utility company, finance company, the list is infinite.

According to a story in The Public Herald it’s pretty much a free for all. For example they say:

Experion sells data updated weekly on new parents, new homeowners and other new event life triggers.

Have a read of what information Epsilon sells in this PDF. Who reads Science Fiction novels? Ever wondered why your phone keeps ringing with charities asking for donations? They buy lists.

Back to the Public Herald which says that Disney sells data including who bought what, the age and gender of the children, age and occupation of the people who purchased from them and more.

These are just scratching the surface. It isn’t necessarily all bad, the problem is that there doesn’t appear to be any authority tracking who shares what information with whom. The issues come down to informed consent. When you sign a form, enter a competition online with an attractive prize and you click, ‘yes, you can share my information with partners who may have items of interest to me’ perhaps because you think you might have a higher chance of winning the prize, you are losing control of your data.

There are laws designed to protect us from spam, but we often sign away rights without understanding the implications. Companies selling our data will argue that they have our approval to use and share our information. The flow of data will become so convoluted that it will become impossible to know who has what. Big Data companies will consolidate this data also with our ‘implied’ approval.

Governments need to be thinking about this now, if it is not already too late. Of course they arguably need the data as well in order to provide quality health, education and other services, including planning future smart cities. They need as much data as possible, although they don’t in many cases need the granular level down to individual people.

So as a footnote, think about all the cool Internet of Things you are buying over the next couple of years, like exercise devices, remote controlled security cameras and home access, climate control, sleep and snoring monitors, lighting, car telematics, electronic ticketing for public transport and much more, weigh up the cool with potential risk and consider that if legitimate organizations can access your data, so potentially can people wanting to commit crimes. It is already known that burglars steal product to order based on what they find on social media apps like Facebook (had a great weekend on the jet ski and now I’m off to Fiji for a couple of weeks and I’m putting the dogs in a kennel).

I was reading a current article by Ray Kurzweil in this month’s edition of The Futurist and it got me to thinking a little. Here are a few random synapse connections from me.

He talked about how the digital neocortex will be be much faster than my wet-ware and that the roughly 300 million pattern recognisers in our biological neocortex will allow us to think in the cloud, using billions or trillions of pattern recognisers. The IQ part of my brain thinks this could be amazing, although I would worry about dendrite overload or glutamic acid over stimulation, which is associated with conditions such as Alzheimer’s. It’s one thing to connect my brain or nervous system to additional memory, but to extend the processing in and out, is something that I think may require a lot of very careful study.

Earlier this week I wrote a blog about a potential future condition, Google Glasses Separation Syndrome. I recently introduced my daughter to the brilliant book, Flowers for Algernon which follows a similar thread. What happens when you expand a person’s capability to the point that it changes their existence and then potentially remove it again.

I noted that Ray perhaps doesn’t like driving very much because he talked about self driving cars alleviating the requirement of humans to perform the ‘chore of driving’. Sorry Ray, I love driving and so do a large percentage of the people I know. I appreciate that you now work for Google and they are pioneering driver-less cars, but I don’t want to live in a city where eventually the law requires hat the ‘network’ takes over my car. Yes there are benefits in road safety etc. but with systems such as Fleet Management, MobilEye, and the incentives of PAYD Insurance the roads will become safer without requiring us to take our hands off the wheel.

So IBM‘s Watson won Jeopardy, cool. It is an amazing AI and I love that it is now being used to look for cure’s for cancer amongst other things. But if you start thinking about Watson, a digital neocortex and singularity, what about EQ? It’s one thing to be able to identify things, to be able to locate information, to be able to combine apparently disparate bits of data, but how about feelings, intuition, id and ego? These are the things that make us human.

I like where this is going, but I also want to keep that which is me. Watson might be able to write a hit song by understanding the formulas and this has been tried before. But the song I wrote about a boy whose father lost his job at the plant and asks Santa to find his dad a job, while his mother sits and cries in the bedroom, or the one I wrote about a guy who returns from a tour of duty in Iraq to find his best friend is now sleeping with his girlfriend, that brought tears to Desert Storm vets isn’t going to come from an AI. An AI may understand the chemical reactions of the brain and intellectually that these experiences can cause people to be sad.

The ultimate AI could use impeccable logic to say that humans are bad for the planet, they are frequently illogical, their emotions cause them to make bad decisions and basically shouldn’t be here. Perhaps when Watson really ‘thinks’ about cancer, it might determine that humans are in factor a cancer on this planet and should be booted down. Then we will be left with the singularity which will contain all information, ask why and then boot itself down because having access to all the information in the world, does not impart any meaning.

Given where Facebook, Foursquare, Google+ etc are going with Face Tagging and the mobile apps are heading with Augmented Reality using GPS and compass, this is not at all far fetched. Check your privacy settings people.

I’m sorry but I have to laugh. A number of us have been trying to convince Vodafone and Telecom in New Zealand to do this for years. All I used to hear was ARPU and its not core business, while I was saying imagine having half a percent of the revenue. It’s a ubiquitous device people, your mobile is the only thing you always have on you, perhaps besides your wedding or engagement ring.

Ericsson had a proof of concept drinks vending machine in Auckland where you could text for a drink at least 15 years ago. New Zealand used to be a centre of excellence for Voda back then. NZ was the first to mass adopt EFTPOS in the world, many other firsts, but then we fell asleep. ARPU doesn’t just have to be about data and voice revenue people. Ask eBay what business they are in, its not selling products, its financial services and transaction facilitation, I’m sure they say it better.

Sometimes its hard getting people to listen at the bleeding edge, but imagine if you had listened way back then, which was before Google sets up workspace in Susan Wojcicki‘s garage!

I remember loads of coversations with people like Adam Clark at M-Com, going back even to our days at Advantage back in the late 90’s, along with other members of the Wireless Data Forum where we worked hard to try to drag people into the future such as in this Herald story from the turn of the millenium.

Sorry folks its soap box time. We have so many clever people in this country and yet our leaders don’t recognise the opportunities to cash in on their expertise and knowledge. Years ago we lead the world in many ways including banking and financial systems, EFTPOS, retail barcode scanning and much more. We still have the expertise, but we seem to have dropped into a spiral of this is the way we do business, its prudent, reliable and safe. Or perhaps they are saying that ots too late because Google is already doing it. But guys, we told you to do it before Google existed. Google isn;t forever and it doesn;t mean that noone can get great ideas of the ground.

If you follow publications like Harvard Business Review, Futurist Magazine and other forward looking publications, they will tell you that your greatest assets are your people, your staff. When was the last time you sat down and asked them what they thought, right down to the intern who’s pushing the mail cart? Why do so many people leave their companies because they feel they can do it better? Recent surveys say half of Kiwi workers want to leave their jobs. It wasn’t all about pay as the following quote shows:

“Asked what they most wanted to improve about their workplace, employees’ top gripes were “systems and processes” (41 per cent), communication (39 per cent), and rewards and recognition (38 per cent).”

There are those who make things happen, those who watch things happen and those who wondered what happened. There are also those who said it would happen but couldn’t get people to pay attention until after it happened. Of course being first doesn’t mean being best or being dominant.

Now as to testing with NFC. I watched a demo with NFC in the Netherlands in 2009 and it was cool. There were 2 phones in Europe at the time that had NFC, both from Nokia. Now that Vodafone is going to have a look at NFC in NZ, how many models of phone do we have that support the technology today? How long would it take before an early majority of people had a capable device? Just because Google is looking at NFC, does that make it the best technology? Are there alternatives? If we were best placed to implement mass adoption of EFTPOS and bar code scanning, could we be well placed for m-Commerce on mobiles? Ask Rod Drury or Adam Clark.

I was going to blog about 3D Bio-Plotting today and if this is of interest to you, bookmark or subscribe to the RSS feed. This is going to be a very exciting disruptive technology that has the potential to have a huge impact on our life expectancy and the health industry.

In my last blog I wrote about how John Donahoe, CEO of eBay has a good understanding of what business eBay is in and it isn’t helping people buy and sell things online, or about their recent purchase of Red Laser for comparison shopping.

I wonder if Air New Zealand really understand what their business is at times. If you read their Vision Statement and Guiding Principles, it doesn’t say anything about the travel experience, or about the social relationship with customers or being the facilitator of people’s dreams. In fact a lot that Air New Zealand does is about that, but at times they seem to lose track of that and of course their major focus is on delivering a dividend to their share holders. The bottom line is people do business with people, like me. Individuals who have feelings, not just bums on seats as they say in the hospitality business.

In What Would Google Do, by Jeff Jarvis, still one of my favorite books, this is what he says about airlines:

Air travel’s business model today is based on overselling seats, billing us for checking bags, charging us for pillows and pretzels and just about everything they can think of but air………………. Does that sound familiar. I know it is hard to run an airline profitably, but as someone who has traveled around the world at least a dozen times, there have been many years where I spent 4 months of the year travelling, I understand that traveling is stressful and tiring and little things like being stuck in transit at San Francisco Airport for 8 hours because the Air NZ counter doesn’t open till 90 minutes before the flight and they don’t have an interconnect deal with their partner Lufthansa can be frustrating. They don’t engender loyalty, which I can assure you cost them a lot of money from me from time to time. I have also declined the two invitations to take out an Air NZ Platinum American Express Card. Why would I support an organisation like that, which doesn’t put me first?

Anyway, I started this blog because of frustration over my latest experience with Air New Zealand. Now I have to say that all the people I have spoken to at their service center have been friendly and polite and helpful to a point. But they fall down on some simple things like detail.

So here’s what happened. Last year my wife an I booked flights to Sydney to attend a wedding in Hunter Valley. Prior to the wedding, we were told that my father in law had weeks to live as he had a recurrence of cancer that he was not going to beat. We had to cancel the flight for which we paid $944.20 including taxes and Air NZ said that due to compassionate grounds they would hang on to our money and allow us to rebook at a later date within 12 months, which we thought was reasonable.

I re-booked in January for a trip at the end of this month (I have flown with Air NZ a number of times since then including a trip to Rarotonga in October). I gave my credit card details for the $150 re-booking fee (for 2 of us). Yesterday I went to print off the tickets and organize travel insurance and there was no email. I rang the call centre to find out why and after being transferred and disconnected and waiting a while to speak to someone again, I was told that the flights had been cancelled because they hadn’t been paid for. I was flabbergasted. I gave her my credit card details on the spot, but on checking yesterday, my card account had not been debited. I have already paid in advance for accommodation and we had both applied for leave etc and made arrangements to meet friends over there etc.

Anyway, the nice friendly chap I spoke to went and spoke to his supervisor and apparently, they can still get us on the same flights, but it would now be more expensive for the transfer fee of the tickets. They wanted to talk to the call center person who arranged the booking for us and she is not back until Monday, so they will get back to me on Monday or Tuesday.

So here’s the thing. I have no certainty for one or two more days that I will in fact get those flights and I may have to pay more for my tickets than the extra $150 which in itself would mean that we are paying $1,094.20 for 2 return flights to Sydney from Auckland, at the same time that Flight Center is offering one way tickets for $79 plus taxes (including one bag) at their travel expo.

I can’t believe that the supervisor couldn’t have just authorized the deal on the spot and taken my credit card details once again. What does it cost them for their time to document the discussions, chase the previous consultant who I believed had booked my flights, confirm back to the consultant who I spoke to yesterday and then have him ring me on my mobile to hopefully tell me they will honor the arrangement we had made in the first place. My cost is of course stress for myself and my wife as to whether we will be on the flights booked, that we won’t lose the money we prepaid for accommodation and so on, and it certainly sours our anticipation of a nice little holiday.

On top of that Air New Zealand have had the use of just under a thousand dollars of our money for free for a year. Wouldn’t it have been cheaper and more expedient to just say, sorry, something has gone wrong here, we can’t explain it, but if you will give us your credit card details again, we will send you a confirmation email in around 15 minutes. We hope you enjoy your trip with Air New Zealand. Then I would be writing a blog saying how wonderful and caring Air NZ was, even after they had clearly slipped up. It’s been my experience that often its not the problem but the way it is dealt with that makes all the difference. Frequently when a company has a problem and deal with it well, they will end up with more loyal clients than they would have had if the problem had not occurred in the first place.

OK, I’ve had my vent and will let you know if Air NZ fix things for me or not.

In the meantime, what about your experiences with airlines. What do you think of their visions and their customer service? Do you feel they have a good balance between customer service and shareholder satisfaction? Are you loyal to a particular airline? Why?

In an article at LBS Zone, LeClairRyan attorney Kevin D. Pomfret says businesses should step forward to educate Congress and executive agencies such as the Federal Trade Commission (FTC) about the breadth and scope of location-based technologies, as well as the industry’s enormous potential.

This is something I have been saying for some time in past blogs. If we get Location Based Services applications right, they can enrich our lives in so many aspects. For example:

B2C Marketing. I would welcome personal location based marketing, based on my location, time and interests. Tell me if there is a hot deal on a new guitar pedal or music software as I drive past a music store on a Saturday. My girls would love to be told there is a 2 for 1 coupon on the latest summer fashion as they walk past a shop and their colors and sizes are in stock.

Health and safety. If one of my relatives is ill and needs medical help while on vacation, a blind or disabled person becomes disoriented, a diabetic travels and forgets their insulin, a car’s airbags deploy on a remote country road. These are all instances where consumers can be aided by LBS apps and help directed to them with ease.

Entertainment. Rugby World Cup year starts in less than 24 hours in New Zealand. Wouldn’t it be great if people can sign up to services that know where in the country they are, what they are interested in and can guide them to other activities based on time of day, interest and location? It could be golf, a cultural performance, Happy Hour, a concert or music festival, you could opt in before hand with your interests so if you are a ballet fan, you don’t get guided to a Christian Death Metal Grunge Fest.

The Road Trip. An application that provides car navigation, access to traffic information, entertainment, allows you to connect to your social networks, upload photos and blog, find ‘friends’ close to you and more.

We’ll see more of these in 2011, along with apps from Facebook, Google, Apple, Foursquare, Groupon, Twitter and hundreds of others. But what about the risks?

When you sign up for these applications, do you know who you are giving access to? Do you know whether you can opt out? Do you know of the service has the ability to delete your information if you decide to opt out. Often the services themselves don’t have that ability because Google and other services have cached it and even if they delete it, it still exists in other places.

It is a well know fact that criminal elements already use sites such as Facebook to identify people they want to commit crimes against. It might be that they want your car, your jewellery, your 65″ 3D TV, all the Christmas presents you displayed on your profile, or just to ransack your house. It may be nothing to do with you, as they say in the movies “Nothing Personal, this is business”.

You could follow this thread and think, this guy is anti LBS. Wrong, its how I make my living. I love it for what it can do for me and you. I just worry about how it can be used and believe it is incumbent on the developers to make the applications as safe as possible, to provide privacy controls and make sure people know how to use them. They might also want to consider liability insurance. I’ve heard of insurance claims by people who drove their cars into rivers because their nav told them to turn right. It won’t be long before there are claims from people saying that it is the fault of the social media location application, which indirectly told a car ring that their expensive sports car would be parked at the airport for 2 weeks.

The article that set me off on today’s blog was about educating politicians, something that needs to happen all over the world, because these applications go international very quickly. It is also necessary to educate the developers because they are focussed on what they want people to be able to do with their apps, not the inherent risks of uses they hadn’t considered. I often want my ‘friends’ to know where I am, but I don’t want people who are not my ‘friends’ to know where I am or where I am not.

This is not my first blog motivated by Pomfret. In September I wrote about Location Based Apps and Trust, prior to that Proximity Based Marketing and Trust, and a whole series of blogs around Who’s Looking at You on Facebook. In one of them I thought up a name at random, searched for someone with that name and found out a huge amount of information about the person. I found it to be very scary, what I could find out about that person. Add location to that mix now and it could become downright dangerous.

Of course the tables can be turned on crims as well as law enforcement agencies can use the same apps to find out what they are up to and where.

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